State audit questions more than $13.7 million in spending on Hawaiʻi's kauhale housing initiative

Oct 07, 2026

A state audit found millions in questionable payments inside Hawaiʻi's kauhale homeless housing program — bad news for Governor Josh Green's signature project, though no one is accused of stealing.

  • The audit flagged how $13.7 million of taxpayer money was spent, including large reimbursements to contractor Home Aid.
  • About $7 million was labeled unauthorized, a claim the governor disputes and says he has paperwork to back up.
  • The state office running the $42 million program lacked qualified staff, written procedures, and basic financial controls.
  • The state accepted all 11 recommendations, including a full review of payments and personnel.
  • Green is defending the program as working and says building will continue.

Outlook: Expect a payment-by-payment review and tighter oversight, with the program itself likely to keep expanding.

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